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A project has an anticipated stream of annual net receipts of $25,000. Its life is 10 years. No salvage value is expected at the end of the 10 years. Compute the net present value of the project, if its price is $150,000 and the applicable discount rate is 8%.
Patent
A legal right granted by the government to an inventor, giving the holder exclusive rights to use, make, or sell the invention for a certain period.
Intangible Assets
Assets lacking physical substance, such as patents, trademarks, and goodwill, that are nevertheless valuable to a company.
Kitchen Gadget
A small tool or device that is used in the kitchen for food preparation and cooking tasks.
Land
An asset category representing the ground a company owns, which is not subject to depreciation unlike buildings and equipment.
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